Corporate Giving Law Greatly Benefits India's Nonprofit Sector

Since 2002, Vikram “Vik” Uppal has spearheaded the humanitarian efforts of the Aid India Foundation, a nonprofit organization dedicated to fulfilling the basic needs of underserved Indian communities. As co-founder of the San Francisco-based nonprofit, Vikram Uppal is instrumental in organizing events and seeking out effective partnerships that provide food, housing, medicine, and other goods to those in need.

In April 2014, India became the first country to require corporations to make charitable contributions. A new addition to the country’s body of company law required all companies reporting annual revenues in excess of 10 billion rupees (approximately 150 US dollars) to donate a portion of it to charity. Under the law, businesses can choose to support initiatives in the areas of education, hunger, poverty, or gender equality, but must contribute at least 2 percent of their net profit to the selected cause.

India’s groundbreaking legislative change greatly increased annual charitable spending from the corporate sector. Independent sources report that collective private-sector donations skyrocketed from approximately 33.67 billion rupees in 2013 to some 250 billion rupees after the law went into effect. Experts also note that the new law has brought corporate responsibility to the forefront of corporate operations, as companies now have a legal obligation to create effective corporate social responsibility strategies.

However, some fear that the law does not go far enough in ensuring corporate social responsibility. According to a survey by accounting agency KPMG, 52 of India’s 100 largest companies did not direct 2 percent of their profits to a charitable cause.

Sustainable Farms in India

Vikram (Vik) Uppal is a cofounder of the Aid India Foundation. Vikram Uppal created the organization to raise funds for initiatives designed to help residents of India. One such initiative is the creation of sustainable farms and improved agricultural practices.

The purpose of sustainable agriculture is to develop farms that incorporate features of the local ecosystem while providing a human food source. Sustainable agriculture focuses on avoiding the use of damaging farming techniques and replacing them with environmentally friendly ones. Another important feature of sustainable agriculture is the collaborative involvement of farmers, laborers, and consumers. The participation of each group is important to the sustainable agriculture movement.

Sustainable agriculture and organic farms are connected because the use of sustainable farming practices can produce organic farm goods. Organic farms are capable of bettering the environmental quality of the land while improving the economic conditions of the surrounding community. It is important that India continue to improve its farming infrastructure to meet the needs of the country’s increasing population.                            

Microfinance in India

As a founder of Aid India, Vikram (Vik) Uppal has engaged in microfinancing activities in India. Vikram Uppal has devoted his time and resources to raising capital that could be used to help underprivileged residents of India.

Microfinance is the provision of loans or other financial services to low-income communities. Many individuals with limited means do not have the financial flexibility to procure a loan through traditional banking means. Microfinancing provides borrowers with the opportunity to raise cash for their farms, homes, or other areas that require investment or development. These microfinance loans typically are issued with favorable loan terms to help individuals to improve their financial standing.

Although microfinancing lends money to people with limited financial means, it is seen as a wise investment by the financial sector because of the high likelihood that these loans will be repaid. Microfinance is seen as a way to infuse cash flow into underdeveloped areas and communities.

Enjoying the outdoors!